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2020 will be an extraordinary year for any enterprise. under the impact of the COVID-19 epidemic in the global market, almost all car companies have been shut down, which undoubtedly makes the sales profits of car companies decline, or even lose money. Recently, Reuters reported that Volkswagen will still reach 10 billion euros (788.54 euros) in 2020.

According to Volkswagen officials, Volkswagen will make an operating profit of 10 billion euros in 2020, excluding expenses on special projects related to diesel, of which the cash flow from the automotive business is about 6 billion euros. Previously, some analysts estimated that Volkswagen's operating profit was only 4.8 billion euros, which shows that even in the relatively bad market in 2020, Volkswagen still achieved better-than-expected profits.

However, according to official sources, the company expects the financial data to be released at the end of February, while Volkswagen's policy on the financial reporting issue also revealed that the data will be interpreted at the annual news conference on March 16.

Due to market factors, Volkswagen expects full-year profit of 10 billion euros this year, but there is still a significant decline. Data show that Volkswagen Group achieved revenue of 25.6 billion euros in 2018, an increase of 7.1% over the same period last year. Operating profit including special project expenses will also reach 19.3 billion euros, up from 17.1 billion euros in 2019 fiscal year. Compared with the profit of the previous year, profit revenue in 2020 fell by 48%.

The main reason for the "halving" of revenue and profit is the obvious decline in sales. According to Volkswagen Group's global sales in 2020, Volkswagen Group delivered a total of 9305400 new cars in 2020, down 15.2% from 2019. Even though the Toyota brand has not officially announced the latest sales, it is inevitable that Toyota will surpass Volkswagen again after four years.

Even so, Volkswagen is still "satisfied" with the profit and sales results. Volkswagen only blamed the decline in sales on the COVID-19 epidemic, which caused a large-scale outbreak of the company around the world last year, which led to the shutdown of the vast majority of production lines and the temporary closure of new car sales outlets due to the epidemic, which at most forced the closure of new car sales and production.

Dr Christian Dahlheim, head of sales at Volkswagen Group, said: "the pandemic made 2020 a very challenging year, but Volkswagen Group performed well in this environment and strengthened its market position."

Volkswagen said that thanks to its "relatively strong" performance in the global market in the second half of 2020, sales in the fourth quarter exceeded those in the third quarter, which was a key factor in VW's improved performance.

It has to be said that such a strong market performance of Volkswagen in the second half of the year is inseparable from the Chinese market. Data show that Volkswagen sold 3.85 million vehicles in China, accounting for 19.3% of the Chinese market and 41.4% of Volkswagen.

What Volkswagen is really satisfied with is the significant increase in the number of electrified models in the global market in 2020, even though Volkswagen still accounts for a small share of electrification sales in 2020. Sales of Volkswagen's pure electric vehicles increased by 214% in 2020, from 73700 to 232000, according to the data.

Herbert Diess, CEO of Volkswagen, joined personal social media platform Twitter with its first tweet to provoke Elon Musk, chief executive of electric carmaker Tesla. Mr Deiss said he was working to transform Volkswagen into a leader in electric cars. It can be predicted that the field of new energy vehicles has become a very popular area for Volkswagen brands. In the more competitive market in the future, electric transformation will become a necessary factor for Volkswagen to compete with other traditional car companies.

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